Government Benefits
As part of your financial plan, take a close look at what you might receive from government pensions. Feel free to call the numbers below for more information or if you have any questions. Government pensions are indexed for inflation. This means they rise each year to cover the cost of inflation, and they are guaranteed for as long as you live.
1. Canada Pension Plan/Quebec Pension Plan (CPP/QPP)—Canada. For 2021, the maximum CPP/QPP retirement benefit for new recipients age sixty-five is $1,203.75 per month. You should determine how much you might receive from CPP/QPP from ages sixty through sixty-five and determine whether it makes economic sense to collect your CPP/QPP before age sixty-five. Your financial advisor or accountant will be able to assist with your answer.
I recommend you submit your application for CPP/QPP as early as twelve months before the month in which you want your pension to begin. To qualify for the monthly CPP/QPP pension, you must meet one of the following criteria:
1. You are sixty-five years of age or older.
2. You are between sixty and sixty-five years of age and have stopped working or have earnings from work below the maximum CPP/QPP retirement pension for two consecutive months.
For information on CPP, call:
In Canada or the U.S.:
1-800-277-9914 (English)
1-800-277-9915 (French)
or visit: www.canada.ca/en/services/benefits/publicpensions/cpp.html
If you elect to receive your pension at age sixty, your monthly payment will be 36 percent less than if you had taken it at sixty-five. If you take your pension after sixty-five, your monthly amount may be larger, by up to 42 percent at age seventy.
For information on QPP, call:
In Canada or the U.S.:
1-800-463-5185
or visit www.rrq.gouv.qc.ca/en/programmes/regime_rentes/
2. Old Age Security (OAS)—Canada
OAS is a basic benefit paid to all Canadians who are sixty-five and older and meet certain Canadian residency requirements. The maximum monthly payment amount in 2021 is $626.49 mo. Depending on other income, you might have to give some or all of OAS back.
To apply for OAS, you can submit your application up to twelve months before intend to start collecting. If you are sixty-five or older, send in your application as soon as possible so you won’t lose any more payments.
For information on OAS, call:
In Canada or the U.S.:
1-800-277-9914 (English)
1-800-277-9915 (French)
or visit www.esdc.gc.ca/en/cpp/oas/index.page
3. Social Security—U.S.
The average American receives a portion of retirement income from Social Security. To qualify for Social Security retirement benefits, you need a certain number of credits. Your benefit payment amount is based on how much you earned during your working career.
Higher lifetime earnings result in higher benefits. In 2021, the maximum benefit at age 66 is roughly $3,113 per month, and at age 70, $3,895.
Supplemental Security Income (SSI)
SSI is an income supplement program available through Social Security. It is designed to help disabled adults and children with little or no income. It provides benefit payments to meet basic needs for food, clothing, and shelter.
For more information on Social Security, call:
1-800-772-1213
or visit www.socialsecurity.gov